Tata Capital targets $11 billion valuation for upcoming India IPO.

According to sources familiar with the matter, Tata Group is targeting a valuation of up to $11 billion for its financial services arm in what could be India’s largest IPO this year.

The sources, who requested anonymity because discussions remain private, said Tata Capital Ltd.’s initial public offering could raise as much as $2 billion. The details are still under consideration and subject to change. Tata representatives did not immediately respond to requests for comment.

Last week, Tata Capital’s board approved listing up to 230 million shares and a secondary share sale by existing investors. Additionally, the company announced a rights issue worth up to 15.04 billion rupees ($172 million).

India’s IPO market remains strong despite recent stock market declines. LG Electronics India is also planning a public listing this year, potentially raising $1.5 billion, while Prudential Plc has engaged banks for a possible $1 billion IPO of its Indian unit. In 2023, Hyundai Motor India Ltd. set a record with its $3.3 billion IPO.

Tata Capital operates as a non-bank financial institution, commonly known as a shadow bank, offering financial services such as loans to customers with limited access to traditional banking. Headquartered in Mumbai, the company has a network of over 900 branches across India, according to its website.

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